Looking for advice based on my current credit picture

Tips and Deals Forums Consumer Credit Improve credit Looking for advice based on my current credit picture


This topic contains 4 replies, has 1 voice, and was last updated by  Anonymous 6 years, 8 months ago.

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  • #200331


    I am looking to get a pre-approved for a mortgage soon and so I pulled my TU score from this site and it is currently 680.


    It told me “the Bad’ was my credit card debt, it was 7050/7200 max.


    I brought it down to 0/1200, 0/600 and 950/3300 for a total of 950/5100 *( 1 company immediately killed my credit limit upon my paying the balance down to 0)

    I am a student and have 6100 of deferred loans.

    I have a car loan with 2500/15900 remaining.

    My oldest account is 10 years, which is the 950/3300 cap one card, ave is 5 years over 13 different accounts.


    I have 2 negatives on my account:


    1: verizon 60$ – May 2006, This was a mistake on verizons account from something… the date is when I signed up for a family plan, they somehow made a mistake on the second line and as I recall I had to sign the papers twice. *I disputed it on my report, but think I will send them a GW letter, because I still have my active family plan and have paid between 100-150 per month for the last 5 years, and 60 bucks is pretty insignificant compared to the 6-9k dollars ive made them in service.


    2: Collection by NCO/ Sbc *- 188$ – listed on report as 4/20/07, but happened 4/20/06, and havnt paid them since then. *This was due to not having service long enough – They gave me a 200$ fee for not having service for 1 year, when in reality I paid for 1 year, but since I moved before the date was up they credited my account 12$ and then gave me a 200$ fee (jackasses…) *


    I was planning on DV”ing them and if I get a response trying to PFD, but all of the links in the the sticky about DV are dead.

    Can these get corrected please


    Any advice on what my next step should be? *Maybe a friendly contact E-mail for verizon? * I as hoping to be able to walk into a bank and get a non-FHA loan sometime in June, I will have aout 10% down for a 125k home.


    Oh Yes, I’m in Ohio and am having a hard time telling if the SOL on the NCO account is up in 6 or 4 years… I never signed anything, if I recall my GF at the time was home when they set up the install, and she would have signed.

  • #417053


    This is done for a number of reasons. Bad credit risks are taken off the books quickly. Other reasons would be they sell morgages so they can buy more morgages. It works like this: You get a 30 year morgage at 6 1/2% — the fed rases rates to 8 1/2 % — your morgage company sells the morgages Fanny Mae or Freddie Mac getting back the principle plus three years in interest. Then they take that money and give out more morgages at the new 8 1/2 % rate, thus making money on you and money on the new morgage.

  • #417054


    Many mortgage companies are really more in the business of initiating the loan. They only have a limited amount of capital, so they sell the loans to other companies, who are more into mortgages as an investment. After the sale, the initiating company has the money to loan out to the next borrower.

  • #417055


    Money today is worth more than the same amount of money will be worth tomorrow.

    If a bank can liquidate some of its mortgages to another company and get the money out of them sooner, it can turn around and re-invest that money into a different venture that has a higher rate of return. This way they can maximize thier profits.

  • #417056


    Once your loan funded with Option One they sold the loan on the secondary market (investors or Fannie Mae, Freddie Mac etc.).

    When the loan is sold the origination company retains servicing rights. This means that who ever purchased the loan must pay Option One fee’s to manage your loan (mortgage payments, escrow etc.)

    These fee’s are very lucrative and Mortgage Companies commonly sell the servicing among each other. It is correct that the higher risk loans are unloaded but they are usually packaged with other loans in the deal.

    It is nothing personal about your specific loan. These loans move in bunches anywhere from a few hundred to 20,000 and more. I process these everyday, they are called Service Releases in the industry.

    The mortgage company that purchased the servicing on your loan did so because it is cheaper to purchase the servicing than to originate a new loan, sell it on the open market and retain the servicing on their own. It is a method to grow for mortgage companies that are not growing fast enough by originating mortgages.

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